A tradition like no other, hearkening back to that fun time in history known as 2007.
Have no fear boys and girls, it’s still the “golden age” just like that period was so famous for. Okay, famous if one owned gold.
From the FDIC website:
The Farmers State Bank of Oakley, Kansas Assumes All Deposits of Small Business Bank, Lenexa, Kansas
July 17, 2026
WASHINGTON—Small Business Bank in Lenexa, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into an agreement with The Farmers State Bank of Oakley, Kansas, to assume substantially all deposits and purchase certain assets of Small Business Bank.
As of March 31, 2026, Small Business Bank reported total assets of $73 million and total deposits of approximately $69 million.
Small Business Bank’s sole branch will reopen as a branch of Farmers State Bank during its normal business hours on Monday, July 20, 2026. Depositors of Small Business Bank will automatically become depositors of Farmers State Bank. The deposits assumed by Farmers State Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.
Customers of Small Business Bank will have immediate access to their deposits. Over the weekend, they can access their funds by writing checks or using ATM or debit cards. Checks drawn on Small Business Bank will continue to be processed, and loan customers of Small Business Bank should continue to make payments as usual.
Customers with questions about this transaction may visit the FDIC’s website or contact the FDIC toll-free at 1-866-314-1744. This phone number will be operational this evening until 8:00 p.m., Central Time (CT); on Saturday from 9:00 a.m. to 5:00 p.m., CT; on Sunday from noon to 4:00 p.m., CT; Monday from 8:00 a.m. to 5:00 p.m., CT; and thereafter from 8:00 a.m. to 4:00 p.m., CT.
The FDIC preliminarily estimates that the failure will cost the Deposit Insurance Fund approximately $5.7 million. The estimate is expected to change over time as retained assets are sold.
As one can see by the minimal impact on the DIF, this truly was a “small business bank” but was it’s failure a surprise?
Not really if one does a cursory scan of the recent news as this story from Banking Dive highlights:
Fed dings small Kansas lender for third time since 2023
Excerpt:
The Lenexa, Kansas-based lender has 30 days to increase its equity through the sale of shares, to find a buyer or to take “other necessary measures” to become adequately capitalized, the Fed ordered.
This is the third time Small Business Bank has been in hot water since 2023, when the central bank cited deficiencies in the lender’s staffing, internal controls, credit risk management, lending and credit administration, capital, IT and third-party risk management.
Examiners found “new and continuing deficiencies” the following year within its anti-money laundering and Bank Secrecy Act compliance.
As has been stated many, many times, there’s more than one cockroach so stay tuned as it looks like Bank Failure Fridays are making their long overdue comeback.
Until October of course, when the election buffoonery takes center stage.